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The Kudlow Report

News/Business. Larry Kudlow. Larry Kudlow provides his unique perspective on business, politics and investing. New.

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Us 7, America 5, Schwab 4, California 3, Iraq 3, Washington 3, Obama 2, Unitedhealthcare 2, Benson 2, Jordon 2, Lipper 2, Garth 2, Kudlow 2, Jane Wells 1, Karen Finney 1, Mitch Mcconnel 1, Obamacare 1, Jack Kennedy 1, John Boehner 1, Jack Kemp 1,
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  CNBC    The Kudlow Report    News/Business. Larry Kudlow. Larry Kudlow provides his  
   unique perspective on business, politics and investing. New.  

    December 4, 2012
    7:00 - 8:00pm EST  

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i suggest that you get it for the holidays. like i say there is always a bug market somewhere. i'm jim cramer and i will see you tomorrow. good evening. this is "the kudlow report". some are jumping ship. and is there a republican doom's day scenario developing? a southern california port strike is costing $1 billion a day. they are turning down $190,000
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salaries. here is the question, will the president end this strike? and tens of thousands of egyptians storming the palace. is egypt about to blow up into a civil war. did president obama disspeaker john boehner in a comment today. >> on the conservative side of the republican party today. with senator demint speaking on the idea that $800 billion of tax increases were offered. but he got the backing of mitch
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mcconnel. take a listen to what he had to say. >> i think it sis important tha the house leadership is trying to mov move it forward. i had hoped that we would be accomplishing more in the real talks. but i can tell you, there is nothing going on privately that is not going on publicly. even as he has to deal with this rebellion. he has to deal with democrats and harry reid's comments today give you a sense of where they are coming from. >> they have to come up with specific revenue. and they refuse to do that. it is a simple question of arithmetic. you can't get from here to there unless you raise the rates.
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so as you know in washington, a rebellion in the ranks like this could be a problem. but in the spohort-term, if it remains constrained. it could be a good negotiating term. he could say i have offered everything that i have and still get this thing passed. you know, i never hear the discussion about spending. i'm not saying you. it is about taxes and revenues. they are supposed to have a $1.2 trillion spending cut. they are nowhere near rephrase g i replacing that. does anybody in washington think about spending and help the taxpayer? spending is going to get done and it is going to include
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spending. the question when those details come out is will the president face the problem on the left of trying to herd cats here. rather than focused on the priority. they are going to have to be part of this deal. so how obama manages the left is something that we are going to have to pay attention to as well. >> let's continue this discussion. here now is karen finney. we have david webb. let me go to you, guy benson. it sounded to me like president
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obama talking about tax rates. >> is this dead or still alive? >> it is still alive. and it is ugly. but the piece that you mentioned. setting aside some of the substance here. there is a new poll out today that shows the public unchanged. it has been that way for weeks now. they had a proposal and i think it is middle ground and they put
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it in a letter and leaked it to the press. i think you heard what you heard from the president all along. >> i have to say, i agree with guy. part of the challenge here is the president knows that he's got the public on his side.
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also remember the exit polling from the elections that shows people are fine with taxes going up on the top 2%. this is part of why the deal from john boehner was a non starter. he said how about deduction caps so you have lots of taxes. is he in trouble with his right
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wing? >> yes, he is. they have purged the scam. you said it. spending cuts. they are talking about $350 billion. what matters here is the numbers. we can't afford this. we have $16 trillion in debt. we have $87 trillion in unfunded
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highbilities those are promises that are made that we have to keep. >> guys, this is part of what is interesting about this conversation. when you hear the speaker talking about the loop holes that is the same rhetoric that we heard from mit romney. >> they are using the stuff that is done in the budget control last year. >> those are terrible talking points.
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>> let me say this point. >> hang on a second. i want to go to guy benson on another point. there is a lot of talk that the republicans might have a doom's day scenario. if there is a budget stalemate, then the republicans will allow a vote on the house floor which is the democrats from the sen e senate. they will vote present therefore it will go through. that is called the doom's day scenario. it would be a ho mage to the president.
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it is this sill ily plaf lily p. you could completely own it. you could say we are letting the country burn. and i think it is seductive. but it is irresponsible. >> they are going to keep fighting. i have to leave it there. president obama says no deal on the fiscal cliff. >> how does raising tax rates on
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the rich help the poor. that is what i don't get. true free market capitalism helps everybody. a rising tide lifts all boats. i'm laugrry kudlow we will be right back. two years ago, the people of bp made a commitment to the gulf.
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bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger.
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>> whow does taxing the rich hep the poor rise above poverty and get a job? let's talk to larry elder. he is the author of the great book, "dear father dear son". welcome back. how does taxing successful wealthy people help the poor get out of poverty. well for people who think like i think it doesn't make any sense.
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but understand something, that is not what this is all about. this is about squeezing the gap between the rich and the poor. if growth suffers, so be it. i mentioned this guy before. one of the biggest unions larry. he said in western europe, they may have higher unemployment but they have less inequality. this is what the agenda is all about. in a practical way, suppose you have a successful person. he or she want to build a house. to do that you might hire 15, 20, 25 people. you got a whole army of people who would go to work. but if you get taxed, you might
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not guy that house. and you won't build. that is the kind of logic i'm not hearing. dow think they get that? >> they don't. i saw lincoln. remember during the debate in 2008 charlie gibson asked the then president obama why raise capital gains? he said it is about social justice and fairness. it doesn't matter that it doesn't work. what counts to these people is class and attacking this rich guy and this poor person who doesn't have much money. but the guy is on the margin of poverty. would love to go to work as a
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landscaper in this hypothetical home that i am describing. the guy on the margin, they would love to work like that. so, there is a connection there and i don't see why washington our friends on the democratic side don't get that. well larry, you wrote a column where you said that obama doesn't want a recession. i beg to differ. he does want that. it is not just me saying this. wow ho ward dean said we are going to get deep cuts and when the republicans get blamed they will come back and extend the bush era rate and it is going along well as far as they are
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concerned. i feel that mr. obama could be bluffed. i feel like he doesn't want a recession. i will take that. remember, these guys don't think that the economy is going to suffer that much. they think they will take credit. that is how they think. talk about social engineering. what happened to the jack kemp argument. what about empowerment. john f kennedy had the same thing. i don't want to bring some down and some up. i want to bring everybody up. where is that argument? >> and jack kennedy said, if you want to raise tax revenues, you
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must cut tax rates. the opposite of what obama said. they don't believe it. they want a western european style cradle to grave state. they want to make sure that they preserve it and they want to pay for it. the middle class is going to be nailed and they are going to blame republicans and they are going to have to go back to get more money. isn't it mostly true, taxing the rich, and you poll the whole electric. the middle income people believe they are going to be next. middle income say you are not going to get enough money there. they are going to hit me and there is going to be a carbon tax. president obama needs to expand the government.
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i wish the majority of the middle class saw it that way. more than half the country felt that his left wing agenda was it. it isn't eventually the middle class is going to get nailed. and the spin will be that republicans jacked up the economy so badly. >> i think that is where this is going. i think there could be a tax and maybe it can't get through congress. but i have never seen a time, i have seen polls on this. taxing the rich. they know that. one last point here.
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going from government to welfare getting a job. do you know there is a high tax rate? we have to figure out a way to make it work so that people don't get hurt. >> i think the government is probably 80% too large. that would be a tremendous engine to close the gap between the rich and the poor. they can will to their children. we don't have that now. i think that is the engine of both in the conneconomy.
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but i'm not going to give up the fight. larry elder. well done. good luck on the book and the radio show. >> let's get to good news. i'm going to take a closer look at sunshine next up. stay with us please. ♪ [ female announcer ] today, it's not just about who lives in the white house, it's about who lives in the yellow house, the green, and the apartment house, too. today we not only honor the oval office, but we honor the cubicle, and the home office as well. because today it's about all of us. and no matter who you are, you're the commander-in-chief of your own life. ♪
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so, right now housing is probably the brightest single spot in the economic story. business investment is not. let's know that we are in a boom period. thousands forced the president to leave out the back door. as egypt boils over will it spread to iraq and jordan as it has in syria. that is next up on kudlow. to offering you tdd#: 1-800-345-2550 low-cost investment options-- tdd#: 1-800-345-2550 like our exchange traded funds, or etfs tdd#: 1-800-345-2550 which now have the lowest tdd#: 1-800-345-2550 operating expenses tdd#: 1-800-345-2550 in their respective tdd#: 1-800-345-2550 lipper categories. tdd#: 1-800-345-2550 lower than spdr tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and even lower than vanguard.
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welcome back to the kudlow report. in this half hour. hundreds of pages of rules for just one tax of obamacare. plus, will the president stop the strike that is costing $1 billion a day? is they are turning down a total pay path. wow, $200,000. first up, you are looking at
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thousands of pictures of cairo tonight. they forced president morsey to free the palace. good evening, jim. those andsy government protesters were mit by police. they calleds for an end to the decrees as well as canceling that snap vote. he has called to ratify a draft constitution. police were seeing fiery tear gas on the crowds. eventually, the motorcade was
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seen without incident. but then the police slowly left the area as well leaving it to battle protesters. and the opposition called this protest tonight a last warning. the movement has promised to continue the struggle. today several newspapers and tv stations joined in the strike. this isn't over yet. and bring the u.s. and allies closer to the serious vicivil w.
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former deputy assistant defense secretary. rula let me begin with you. is this going to blow up into a civil war and blow up? >> no, i think it is against him grabbing power. it is a sign that he needs to back off and drop the decrees and make a constitution that is not acceptable by the egyptians. he is not governing in the name of the muslim brotherhood. he needs to listen to them.
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>> his recent actions suggest that the answer is no. and that is he going his own way. >> i hope she is right. everyone that you can think of is that the people who prevailed is that the people who are the most organized are the most ruthless. i want to ask you about the role
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of al qaeda in iraq and in jordon. could this spread to iraq? >> i think they have nothing to do with each other. it is wrong. they are two different cultures. they are a million years away from each other. let protesters are civil enough not to become violent. you saw the soldiers and the police men. they let them say what they wanted. and the us aid. and here the government has a
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major role because we give $1.4 billion to the government. we tell him. look, there is a set of conditions we want the transition and you have to understand that human's rights have to be republican respected listen. because he needs that money. >> i want to raise this issue. a lot of people are talking about al qaeda and jordon. >> you didn't get the memo that
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al qaeda is on the path to defeat. you have these folks on the march. you have the obama administration saying it is going to promote arms. a group that is sworn to our destruction and may end up in the hands of al qaeda as well. that is the real dirty secret here. whether it is benghazigate maybe
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and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger. >> regardless of how fiscal cliff negotiations work out, for the first time ever, the irs will impose a new income surtax on all investment gains including your home. 159 pages of rules for one tax. this cannot be good. here now is the author of the book democracy denied. 159 pages. am i right it is going to include gains on your home?
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in fact this rule looks like it is going to cover more ground than originally thought. this surtax? >> well, you still have an exclusion on the tail of a primary residence. above that, it would be subject to this surtax. independent income. the rules are surrising. all rental income, you are going to have to pay the surtax on that rental income. depending on what happens with
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fiscal inclusive, we could be looking at 43.4%. all of this stuff, income is going to go up. there is a 0.9% payroll tax for people above $250,000. explain this to me. these investments aren't they already tax ee eed once? when you put it into corporate assets, you put it into corporate stock. this is an additional layer of tax on already taxed income.
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to worsen that, worsens that treatment. it decreased capital formation and hurts economic growth. i have 159 rules, pages i beg your pardon. how does that help both? how does that help economic growth which is sagging? 2% or less. you have guys on wall street saying you have 1.5%. how in the world does 159 pages of surtaxes on all capital gains help economic growth? >> this seems to be a straight forward surtax. it shouldn't take 159 pages to explain that.
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they are heaping on tax on top of tax to finance obamacare. i do not see this is social engineering. when the republicans say they are going to hold the line on raising rates? they are going to keep the regular rates where they are, we still have this surtax on the rates. the payroll tax goes up. we appreciate it. we will get you back soon.
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january 1st, is when it begins folks. anyway, will president obama have the courage to end the strike at two california ports that are scrare crippling the w economy? that is next up. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment?
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cnbc's jane wells joins us now with the latest. >> they say it is not about the money. federal mediate or has been hir. ships are backing up. companies like home depot say it is starting to impact their supply chains. here is the issue. it doesn't appear to be about the money.
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up to 11 weeks of days off. theion onwants fellow union members to fill in on those dates and management doesn't want to do that if those people aren't needed. the union is using technology which is decreasing the need for people. >> like computers. >> yes. >> this is one of your greatest moments. 11 weeks off and guaranteed
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security. did i get that right? >> yes, you did. but the bigger issue here they say is the guaranteed job security. they say we will feel it is guaranteed if you put language in the contract saying you will never outsource these jobs. management not willing to do that. >> i didn't know such a thing was still debated. that is incredible. >> many thanks. i guess. always many thanks to jane wells. you didn't make it up. so now the question is, will president obama have the courage to end this strike. justin, welcome back. under the taft-hartley law. president obama can step into end this strike. is there any sense at all that
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he will do it? >> well, it has become a rare opportunity for the president to intervene in strikes. we are at a near record low for the number of work stopages in this country. we have seen five labor movements and trying to shut down the airlines on the thanksgiving break. it is clear that the unions feel that they have the wind at their back. >> well, the old taft heaartley law spawned the national labor relations board. that is something that, i come back to this again, have the business people involved.
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they are cutting off the supplies and the economy down there. california is one of the worst economic basket cases in the state. has any one appealed to the state or the board to put a taft hearty injunction in place? >> is it in the buzz? >> there is a buzz about it. the retail federation has asked him to intervene. when did they ask him? when did they ask the president to intervene do you have a sense of what the timing was? is. >> there was a process that involves the president convening with a board. there has to be an assessment as to whether there is a national
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importance. the last time was when president bush did the same thing with the same union in the same port. president started this immediately. the trouble is that it is over the same thing which is union job security being replaced by technology. in 2002 the union was upset because bar code scanners were capable of replacing people with clip boards. but 190,000 total. we talked to the baker's union
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when hostess went down. these are the highest paid union guys. these are among the highest paid union people in america. we have the same thing going on. this goes back to those people in germany. they would demand huge sums of money so that ships could pass. you have 800 people holding them hostage.
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they are screwing up the supply chain. food is going to be involved pretty soon. this is what the seiu did on thanksgiving weekend. she said she could have cared less. that is fair. the union this union of 800 people has found themselves in a corner of the economy wherever i one says just solve the problem. you have the customers of the ports and the city saying fix this. when it comes to the president in this economy. we are 8 days in and he hasn't started the process of
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reconvening the board. >> the board is already so pro union as is the president fresh off his re-election even though this is not going to be a california emergency, this could be a national emergency for closing down those huge ports. that is it for tonight's show. thank you for watching. we will see you tomorrow night we need premarket capitalism. not a union hold up. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide.
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